Criminal and civil orders result in more than $214,000 in fines and penalties through first half of 2018

​BALTIMORE – The Maryland Insurance Administration (“MIA”) continues to investigate and prosecute individuals and businesses for committing insurance fraud. Insurance fraud, one of the most costly crimes in the country, costs Maryland consumers money in the form of higher premiums.

During the first half of 2018, MIA investigations led to the criminal prosecution of 12 people for committing insurance fraud. The agency issued another 25 civil fraud orders. Enforcement efforts resulted in a combined total of $68,092 in fines and penalties as well as $146,400 in restitution to insurance carriers impacted by the fraudulent activity.

“Our talented Insurance Fraud staff follows up and investigates every confidential tip received and we want the public to report all suspected insurance fraud to us,” said Insurance Commissioner Al Redmer, Jr. “The MIA’s efforts to root out fraud have resulted in fines, penalties and restitution in excess of $2 million over the past several years. Our investigations have led to criminal convictions and jail time as well.”

Specifics on Civil Fraud in Maryland

In October 2012, the MIA was granted authority to issue insurance fraud civil orders. Since 2013, the MIA has sanctioned 198 individuals with committing insurance fraud in Maryland. Penalties totaling more than $821,648 have been issued and those individuals were also ordered to pay $269,552 in restitution.

Specifics on Criminal Fraud in Maryland

Since 2011, the Insurance Administration has investigated 371 fraud cases which were prosecuted through the offices of local State’s Attorneys and the Attorney General. Twelve cases resulted in criminal convictions, jail time, and fines totaling $26,272. The Courts also ordered the defendants to pay more than $1,077,373 in restitution to the insurance carriers and individuals impacted by the fraudulent activity. In the first six months of 2018, 12 cases resulted in total fines and restitution of $105,581.

The Insurance Administration is an independent State agency charged with enforcing insurance laws and regulations. Its Fraud Division, staffed by former law enforcement officers and prosecutors, investigates reports of fraudulent activity related to insurance matters. If you suspect that someone has committed insurance fraud, call the MIA’s Fraud Division hotline at 1-800-846-4069, or email a referral form to fraud-referrals.mia@maryland.gov. To learn more, please visit www.insurance.maryland.gov. The MIA publishes details of the fraud orders on its website; to view civil fraud and criminal fraud information look under our Consumer Fraud page on our website. (http://insurance.maryland.gov/Consumer/Pages/InsuranceFraudConsumer.aspx)

To learn more about insurance fraud across the United States, visit the National Insurance Crime Bureau website: nicb.org. The National Insurance Crime Bureau is the organization dedicated to fighting insurance fraud and crime. The NICB partners with insurance companies, law enforcement agencies and regulators to identify, detect and prosecute insurance criminals. Watch the latest NICB video here.